Local Real Estate Expert Says Central Minnesota Home Price Report “Inaccurate”, Reveals Market Truths

(KNSI) — If anyone has bought or sold a home recently, you know the market is still red hot. Some interesting numbers were recently released about home prices in central Minnesota, making it appear that they are on the way down, but one local realtor says that is somewhat misleading.

Reports from Realtor.com showed the median home price in Stearns County in December was $228,000. Compared with November’s showing of $255,000, it looks like home prices plummeted by more than 10%. Comparing those numbers with the previous year, when the median home sale price was $245,000, it looks like a 6.9% drop.

Chris Hauck with Coldwell Banker Realty explains that sales of very expensive homes went through the roof when interest rates were really low last spring through the fall. Then they went up to 7.5% or 8%. That caused the sale of expensive homes to cool significantly. In turn, the average price dropped without expensive home sales, but Hauck says individual homes are actually going up in value.

When a seller lists their home for $225,000 today, Hauck is seeing them get more offers than they know what to do with in the first 24 hours. The price can also escalate as those counteroffers come in, as there is a dearth of available homes. To have a balanced market, which means six months’ worth of inventory, the area would have 1,400 homes available. According to Hauck, there are 339 homes for sale within a 30 mile radius of St. Cloud.

If someone is looking to buy, Hauck says interest rates are bouncing between 6.5% and 7%, so it may be a good time for a buyer to save some money but prepare to be competitive.

Hauck advises potential buyers not to let interest rates scare them from making the first move. Once rates drop, mortgages can always be refinanced.

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